EGS Biweekly Global Business Newsletter Issue 24, Monday, February 22, 2021
By William (Bill) Edwards, CEO of Edwards Global Services, Inc. (EGS)
“We delight in the beauty of the butterfly, but rarely admit to the change it has gone through to achieve that beauty”, Maya Angelo. Compliments of Catharine Monson, CEO, FASTSIGNS
“The secret of success is to do the common thing uncommonly well”, Averstu.com
“If your dreams do not scare you, they are too small.”, Richard Branson
““Travel is fatal to prejudice, bigotry and narrow-mindedness.”, Mark Twain
Introduction
Our biweekly newsletter focuses on what is happening around the worldthat impacts new trends, health, consumer spending, business investment and travel.
Highlights in issue #24:
- CEO business confidence on the rise in two surveys
- Australia, Japan and New Zealand begin to vaccinate citizens
- The future of work after COVID-19 – a major McKinsey report
- Pizza’s popularity has proven itself to be pandemic-proof and growing while restaurants in general continue to suffer during the crisis.
- US Consumers went on an Unexpected Rampage in January
- US Restaurant Customers Showing Signs Of Pandemic Fatigue
- Etihad Airways and Singapore Airlines have fully vaccinated air crews
We daily monitor 30+ countries, 40+ international information sources and six business sectors to keep up with what is going on in this ever-changing environment. Our GlobalTeam™ on the ground covers 43 countries and provides us with updates about what is happening in their specific countries.
Please feel free to send us your input and sources of information. Our contact information is at the bottom of this newsletter.
First, a few Personal Comments
This issue has numerous updates on vaccines and travel around the world. Plus, some interesting executive confidence surveys and studies and announcements related to the future of work after COVID-19. As of today, the number of vaccine doses given to date around the world has reached 208,000,000 with the COVID-19 cases to date standing at 112,000,000. Travel new is both up and down but both airlines and travelers are planning for 3rd and 4th quarter increases. Finally, news on how some brands are innovating to meet global consumer needs and desires.
Vaccine Updates from Around the World
“Vaccines cut Covid hospital admissions by up to 94%: Edinburgh University research ‘very encouraging’. By the fourth week after the initial dose, the Pfizer-BioNTech and Oxford-AstraZeneca vaccines reduced recipients’ chances of being admitted to hospital with Covid-19 by up to 85 per cent and 94 per cent respectively.”, The Times of London, February 22, 2021
“Johnson unveils plan to end England lockdown by end of June: Prime minister announces easing of restrictions starting with reopening of schools on March 8. The prime minister’s long-awaited easing plan, published in a 60 page document on Monday, contains four stages for ending the harsh social distancing restrictions that will take place over a four-month period.”, The Financial Times, February 22, 2021
“Pfizer says it’s ramping up vaccine production: Pfizer CEO Albert Bourla said Friday that the company was adding suppliers and expanding its manufacturing capacity to ramp up production of the Pfizer-BioNTech coronavirus vaccine.”, Axios, February 19, 2021
“The CDC says people who are fully vaccinated can skip quarantine — with caveats: According to an update from the U.S. Centers for Disease Control and Prevention (CDC), fully vaccinated people will no longer be required to quarantine after being exposed to someone with COVID-19 if they meet all the criteria.”, The Points Guy, February 11, 2021
“Australian PM is vaccinated as rollout begins: Australian Prime Minister Scott Morrison has received the coronavirus vaccine as the country prepares to start inoculations this week. His jab was televised on Sunday in order to help boost confidence in the vaccine rollout across Australia. Vaccinations officially begin on Monday and at least 60,000 doses are expected to be administered next week.”, BBC News, February 20, 2021
“Japan formally approves its first COVID-19 vaccine: Japan has formally approved its first COVID-19 vaccine and says it will start nationwide inoculations within days, but months behind the U.S. and many other countries. Japan’s health ministry said it had approved the vaccine co-developed and supplied by Pfizer Inc.”, ABC News, February 14, 2021
“Japan vaccine supplies to be limited, delaying shots for elderly: Japan will only receive limited doses of COVID-19 vaccines for the first months of the rollout and shots for the elderly will be distributed gradually, the country’s inoculation chief said. Pfizer Inc, the maker of Japan’s only approved COVID-19 vaccine, is ramping up production in Europe, but those increased supplies are not likely to reach Japan until May, Administrative Reform Minister Taro Kono cautioned on Sunday in an interview with national broadcaster NHK.”, Reuters, February 22, 2021
“New Zealand begins COVID-19 vaccinations programme, Australia starts Monday: New Zealand started its official rollout of Pfizer-BioNTech’s COVID-19 vaccine on Saturday, while Australia finalised plans to begin inoculations on Monday, a new phase in tackling the virus that both countries have kept largely contained.”, Reuters, February 19, 2021
“Spain betting on vaccine passports to revive summer tourism: Spain hopes the introduction of vaccination passports combined with pre-travel COVID-19 testing will allow British tourists to return to Spanish destinations this summer, a tourism ministry source told Reuters on Tuesday. The government has no plans to introduce quarantines on foreign visitors, and was also counting on a wider agreement to be hammered out between Europe and Britain to remove restrictions on non-essential travel, the official added.”, Reuters, February 16, 2021
“Lifelong immunity hope for Covid-19 vaccine: Trials of coronavirus vaccines for children as young as five are set to begin within days, laying the groundwork for a childhood immunisation programme that could protect people from Covid-19 for most of their lives.”, The Times Of London, February 14,,2021
Interesting Data and Studies
“CEO confidence hits 17-year high as vaccine rollout continues: Overall, 82% of CEOs expect economic conditions to improve over the next six months, up from 63% last quarter, the Conference Board reported. The percentage of CEOs expecting conditions to worsen was cut in half, dropping to 7% from 15%. Similarly, 78% of CEOs anticipate short-term prospects in their own industries to improve, up from 65% in September.”, Axios, February 19, 2021
“CEO Projections 2021: Reigniting the Growth Engine: In the year ahead, an economic recovery will release pent-up demand. CEOs should consider these insights to prepare their business for the next growth cycle. CEOs report that “hiring, recruiting and sourcing” is their No. 1 decision area. Technology tops the list of planned investments for 2021. Morale is a critical challenge that CEOs must address at all levels.”, Vistage, February 21, 2021
Global and Regional Travel Updates
“What will travel look like after the pandemic?: Covid-19 has brought international travel to a standstill. But it will recover and may even become a better experience, says Simon Wright.”, The Economist. February 13, 2021
“Study Finds Most Travelers Are Rebooking Canceled Trips in 2021: More than half of travelers have rebooked or plan to rebook canceled trips in 2021, according to an IHG Hotels & Resorts survey of 6,000 people, including 2,000 Americans, conducted by OnePoll in January.”, Travel Pulse, February 9, 2021
“Three Main Latin American Carriers Reinforces Strategies to Protect Passengers: The main Latin American airlines LATAM, Avianca and Aeroméxico have announced campaigns to reinforce the safety and operational hygiene protocols offered to its passengers, all in line with the recommendations of international authorities.”, Airline Geeks, February 20, 2021
“The Importance of Travel & Tourism in Driving Global Economy: Restoring international travel and tourism will be vital to enhancing social progress and driving the global economy post-pandemic, according to a new Social Impact Paper released by the World Travel & Tourism Council (WTTC) in collaboration with U.S.-based nonprofit Social Progress Imperative (SPI).”, Travel Pulse, February 10, 2021
European Union Travel Confidence – https://bit.ly/3a1h1VL
Asia Pacific Traveler Confidence – https://bit.ly/2Zf0ZSd
“Alaska Airlines Offering VeriFLY Digital Health Passport for International Travel: Alaska Airlines passengers arriving in the U.S. will be able to streamline their required COVID-19 documents using the VeriFLY app beginning Friday, February 5, the airline announced on Thursday. The free and secure third-party app offers travelers expedited check-in and verification for their arrival to the U.S. so they can meet the latest entry requirements established by the Centers for Disease Control and Prevention (CDC) last month.”, Travel Pulse, February 4, 2021
“Crystal Cruises requiring COVID-19 vaccines for all passengers: On Thursday, Crystal Cruises announced its updated health and safety protocols, which require that all passengers are fully vaccinated at least 14 days before their voyage. Passengers will have to offer proof of vaccination in order to board.”, Fox News, February 20, 2021
“Delta plans to block middle seats through April to give passengers ‘complete confidence’: Delta Air Lines announced Monday it would extend its commitment to blocking middle seats on flights through April…. Several U.S. airlines blocked seats for a while in the name of social distancing amid the coronavirus pandemic; however, all but Delta have since abandoned the practice.”, USA Today, February 8, 2021
“Etihad Airways Operates with 100% Vaccinated Crew: In an effort to help curb the spread of COVID-19, Etihad Airways (EY) has become the world’s first airline with all its operating pilots and cabin crew vaccinated. Through this, the United Arab Emirates’ national airline strives to give peace of mind to passengers traveling with it., Airways Magazine, February 11, 2021
“Air New Zealand Will Trial Vaccine Passport System On Flights To Australia: Air New Zealand will ask its passengers to use a digital health pass on flights to Australia as a trial run for a future digital “vaccine passport” that travellers will use to confirm that they have been immunized against Covid-19, offering a possible glimpse into international travel in the post-pandemic world.”, Forbes, February 22, 2011
“SAS Plans 180 European Destinations for Summer 2021: Expecting ease in travel restrictions and a healthier situation with the rollout of the COVID-19 vaccine, SAS Scandinavian Airlines (SK) will increase capacity on all domestic routes for the coming Summer season. The new approach is to apply both to the Nordic destinations as well as to major cities in Europe. According to the airline, the new flight program is to meet an increase in demand for leisure as well as business travel assuming that travel restrictions have eased.”, Airways Magazine, February 10, 2021
“Singapore Airlines Is Operating Flights With Completely Vaccinated Crews: All three airlines under the SIA Group umbrella—including Singapore, its regional carrier Silk Air, and its budget arm, Scoot—are now “among the first carriers in the world to operate flights with a full complement of vaccinated pilots and cabin crew,” according to a release from the airline.”, Condé Nest Traveler, February 11, 2021
Latin America
Australia
“How Melbourne beat Covid-19 with strict lockdown and computer modelling: Jason Thompson had to endure public pressure while predicting how 1,000 scenarios would affect cases, Bernard Lagan writes. As a clinical psychologist Jason Thompson knows all about stress, and as Australia’s second largest city struggled with a venomous second wave of Covid-19 late last year he was under huge pressure. With six million people shuttered in their homes in and around Melbourne, the crippled city was relying on him to work out when they could resume their lives.”, The Times of London, February 18, 2021
“Brisbane’s first online-only delivery hub opens: A warehouse in Brisbane’s south has become the city’s first hub of ‘smart kitchens’ that cater purely for online delivery services such as Deliveroo and Uber Eats. The facility in Coorparoo houses 29 kitchens, purpose-built for existing and new restaurants to cater for online food deliveries.”, Brisbane Times, February 10, 2021. This article is compliments of Jason Gehrke, Managing Director of the Franchise Advisory Centre, Brisbane, from their February 19, 2021 franchise newsletter.
Mainland China
“China unveils plan to transform manufacturing sector with internet of things: China plans a hi-tech transformation of manufacturing to offset rising production costs and consolidate its position in global supply chains. Beijing will help modernise the sector with advancements in 5G, cloud computing and IoT, the government said on Thursday.”, South China Morning Post, February 18, 2021. Compliments of Paul Jones, Jones & Co., Toronto
“China set to be first country where e-commerce sales outstrip bricks-and-mortar retail in 2021: Some 52.1 per cent of China’s overall retail sales are expected to come from e-commerce transactions this year, according to research firm eMarketer The pandemic boosted online sales that were already growing at a steady clip thanks to the rapid digitalisation of traditional trade-in China, experts say.”, South China Morning Post, February 19, 2021, Compliments of Paul Jones, Jones & Co., Toronto
“Sky’s the Limit for China’s Record Lunar New Year Box Office Takings: The annual Lunar New Year vacation has not yet finished, but amid stories of hard-to-buy movie tickets and seats costing a third more than usual, China’s cinema sector has bounced back to record 6 billion yuan in advance sales since the holiday began on Feb 11. This includes over 1 billion yuan (US$150 million) a day for the first three days of the Year of the Ox.”, Caixing Global, February 16, 2021
“China’s Gen Z consumers drive growth of domestic brands as spending power rises: This group of young consumers — born between 1996 and 2010 — accounts for 17% of China’s population but 25% of total expenditure on new brands, according to L Catterton’s latest consumer insights report on China. Unlike previous generations, China’s Gen Z cohort is notably more globally minded and enthusiastic about ‘Made in China” products, said Charlotte Chang, vice president of consumer insights at L Catterton.’”, CNBC, February 16, 2021
India
“Is the epidemic finally coming to an end in India? Is the epidemic firmly in retreat in a country where many early modellers had predicted millions of deaths due to Covid-19? By the middle of last week, India was barely counting an average of 10,000 Covid cases every day. The seven-day rolling average of daily deaths from the disease slid to below 100. More than half of India’s states were not reporting any Covid deaths. On Tuesday, Delhi, once an infection hotspot, did not record a single Covid death, for the first time in 10 months.”, BBC News, February 17, 2021
Israel
“Israel’s COVID vaccination pass opens fast track to normal life: Israel reopened swathes of its economy including malls and leisure facilities on Sunday, with the government saying the start of a return to routine was enabled by COVID-19 vaccines administered to almost half the population.”, Reuters, February 20, 2021
“Israel to reopen gyms, hotels to people who have been vaccinated: Israeli Prime Minister Benjamin Netanyahu said Saturday that people who have been fully vaccinated against the coronavirus will soon be able to download a certificate that would allow them to attend cultural events, fly abroad and go to gyms.”, Axios, February 20, 2021
Japan
“Japan extends economic recovery as exports, capex shake off COVID hit: Japan’s economy expanded more than expected in the fourth quarter, extending the recovery from its worst postwar recession thanks to a rebound in overseas demand that boosted exports and capital spending.”, Reuters, February 14, 2021
“Japan Keeps Its Covid Fight Simple With a Rule Starting at Dinnertime: Avoiding lockdowns, Tokyo has success controlling infections with minimalist approach. In the fight to suppress Covid-19, Japan has found success by stripping down its policy to one simple measure: closing restaurants and bars at 8 p.m. The government hopes to lift the state of emergency by March 7.”, The Wall Street Journal., February 9, 2021
“Like most economies across the globe, Japan’s has taken a hit from the coronavirus pandemic. The world’s third-largest economy contracted for three consecutive quarters beginning in Q4 of 2019. Its real gross domestic product shrank 4.8 percent in 2020 – the largest decrease since 2009. Still, all things considered, Japan has weathered the storm fairly well. Its unemployment rate, which has hovered around 2.5 percent for the past three years, did not rise significantly in 2020, thanks largely to employment protection subsidies.”, Geopolitical Futures, February 19, 2021
Singapore
“Singapore on path to recovery as fourth-quarter GDP shrinks less than estimated: Gross domestic product (GDP) fell 2.4% year-on-year in the quarter, the ministry of trade and industry said on Monday, versus the 3.8% drop seen in the government’s advance estimate. Analysts had expected a contraction of 3.5%, according to a Reuters poll.:, Reuters, February 14, 2021
United Kingdom
“Experts predict huge fall in Covid patients: The number of coronavirus patients in hospitals in England will more than halve over the next month, according to internal government projections seen by The Times. Only one per cent of people offered a coronavirus jab have turned the chance down, according to the Office for National Statistics.”, The Times of London, February 12, 2021
“British business is in surprisingly good shape: Although the economy has shrunk by a tenth in a year, companies are flush. Despite the pain in the hospitality and retail sectors, company insolvencies in England and Wales fell by a fifth between 2019 and 2020. While overall business profits slipped in 2020, the impact was far less severe than in the financial crisis of 2008 or the early-1990s recession. And British businesses have never held so much cash.”, The Economist, February 13, 2021
“Warnings inflation could breach 2% target as prices rise: Prices rose in January in what some economists warned could mark the first step towards increasing costs post-lockdown. Consumers paid more for food and sellers of household goods offered smaller-than-usual New Year discounts, official figures suggest. Inflation rose 0.7% in the 12 months to January, up from December’s 0.6%.”, BBC News, February 17, 2021
“Wendy’s Is Reopening Here For the First Time in Two Decades: Get ready for square-shaped burgers, England! During the summer of 2020, Wendy’s Company announced that it is hoping to return to the U.K. after a 20-year absence, and the news was recently confirmed with new details. In the coming months, the chain will open locations in Reading and Oxford, and locations in London are being looked into next, according to The Sun.”, Eat This, Not That!, February 21, 2021
United States
“US: Consumers went on an Unexpected Rampage in January: The US consumer came roaring back with a vengeance in January as retail sales sky-rocketed 5.3% m/m, far beyond expectations of 1.2%. It was the first gain after three consecutive months of losses. Outside of the pandemic, it was the third-largest monthly gain ever, and it was the largest gain since October 2001, the month after the 9/11 attacks. Of the 15 categories reporting for December, there wasn’t a single decline.”, Euler Hermes, February 17, 2021
“Restaurant Customers Showing Signs Of Pandemic Fatigue: Concern for safety protocols such as masks and gloves softened among consumers. Consumers favored shorter wait times over safety protocols. Curbside and in-store pickups are on the rise.”, Franchising.com, February 15, 201
“The International Franchise Association (IFA) estimates more than 26,000 franchised locations will be added this year, (in the USA) offsetting declines seen in 2020. Employment is projected to grow by more than 10%. The projections hinge on several factors including control of the pandemic, the vaccine rollout and government aid to businesses and individuals. In its annual economic outlook, the International Franchise Association is estimating more than 26,000 franchised locations will be added, or a gain of 3.5% to more than 780,000 establishments.”, CNBC, February 17, 2021
“Pizza proves to be pandemic-proof: Pizza’s popularity has proven itself to be pandemic-proof and growing while restaurants in general continue to suffer during the crisis. According to The New York Times, combined revenue for Domino’s and Papa John’s through much of 2020 ‘grew so much that it was roughly equivalent to their selling about 30 million more large cheese pizzas than they had the year before.’”, LinkedIn News, February 14, 2021
“Salesforce rethinks its Ivory Tower offices: The company announced Tuesday a new “work from anywhere” strategy that gives employees far more flexibility to choose what place they consider the office. Salesforce said most employees will work from the office only one to three days a week, while some will work fully remotely. It now foresees that only the smallest share of its workforce will come to an office each day.”, Axios, February 10, 2021
Brand News
“Why Burger King France Handed Out a Free Bag of Potatoes to Every Customer Who Wanted One: The chain bought surplus crops from struggling farmers hit by the pandemic. To help farmers in France, Burger King snapped up an extra 200 tons of potatoes that otherwise would not have been sold. But what was it going to do with all those potatoes? The solution: Give away a free kilogram bag of potatoes to any drive-thru customer who wanted one (it came out to about 181,000 bags up for grabs, by our calculations).”, Ad Week, February 16, 2021
“Checkers & Rally’s Rolls Into the Future with New Look and Momentum: The chain’s “restaurant of the future” model will debut this summer. Same branding. More contemporary design. In 2020, Checkers beat counter-service competition by more than 600 basis points, CEO Frances Allen says.”, QSR Magazine, February 11, 2021
“Denny’s starts three-phase rollout of new virtual brands: More than half of U.S. locations have signed up for Burger Den, Melt Down delivery-only concepts, CEO John Miller says. the three-phase rollout began earlier this month, the company said Tuesday. ‘These brands provide opportunities at dinner and late night to leverage underutilized labor and kitchen space,’ said John Miller, CEO of the Spartanburg, S.C.-based family dining brand, on a fourth-quarter earnings call Tuesday.”, Nation’s Restaurant News, February 19, 2021
“McDonald’s testing plant-based McPlant burger at select locations in Scandinavia: Customers in Denmark and Sweden are the first to sink their teeth into the sandwich. The meatless burger was first teased as an upcoming menu offering during an Investors Day event in Nov. 2020. Made with a “juicy, plant-based patty” and “all the classic toppings” on a sesame seed bun, the McPlant was touted as the only plant-based burger with the “iconic” McDonald’s taste.”, Fox News, February 2, 2021
“Wingstop’s digital sales skyrocket during pandemic: Fast-casual brand sees digital business push past $1 billion, to more than 60% of systemwide sales, CEO Charlie Morrison says. The Dallas-based fast-casual brand said systemwide sales were $1.95 billion for the fiscal year ended Dec. 26, compared to $1.52 billion in the prior year.”, Nation’s Restaurant news, February 18, 2021
“Restaurants and Startups Try to Outrun Uber Eats and DoorDash: Big delivery-app fees gnaw at many restaurants; entrepreneurs and eateries pitch workarounds. DoorDash Inc., Uber Technologies Inc.’s UBER Eats and Grubhub Inc. GRUB can charge restaurants up to 30% of every order—a chunk many owners say dents profits even as more orders come in. A new crop of services is promising online ordering at a lower cost to eateries, by letting the restaurants arrange more deliveries themselves.”, The Wall Street Journal, February 21,,2021
Articles and Charts About Doing Business in The Times Of COVID-19 and Beyond
“The future of work after COVID-19: Here, we assess the lasting impact of the pandemic on labor demand, the mix of occupations, and the workforce skills required in eight countries with diverse economic and labor market models: China, France, Germany, India, Japan, Spain, the United Kingdom, and the United States. Together, these eight countries account for almost half the global population and 62 percent of GDP.”, McKinsey, February 18, 2021
“10 Biggest Challenges Small Business Owners Face Right Now: The small business owner and entrepreneur has been challenged over the past year. How can you help those in need? Everyone needs a village.”, Entrepreneur Magazine, February 20, 2021
“The World’s Most Searched Consumer Brands: Strong brands create an emotional link with consumers, and tech brands are no exception. In fact, Google, Amazon, Netflix, and even eBay rank as some of the most searched consumer brands worldwide. It’s hard to imagine life without these household names, but how do brand preferences shift and change across internet searches worldwide?”, Visual Capitalist, February 12, 2021
“Where Are the Oldest Companies in Existence? In just a few decades, it’s possible that some of today’s most recognized companies may no longer be household names. Corporate longevity, or the average lifespan of a company, has been shrinking dramatically. In the 1960s, a typical S&P 500 company was projected to last for more than 60 years. However, with the rapidly transforming business landscape today, it’s down to just 18 years.”, Visual Capitalist, February 21, 2021
Who We Are and How We Help Companies ‘Go Global’ Successfully
Edwards Global Services, Inc. (EGS) provides a complete International solution for U.S. businesses Going Global. From initial global market research and country prioritization, to developing new international markets, providing in-country operations support and problem solving. around the world. Our U.S. based executive team has experience living and working in many countries. Our Associate network on the ground overseas covers 40+ countries.
Founded in 2001, Edwards Global Services, Inc. (EGS) takes businesses global and currently has activity in 25 countries. Our Clients are consumer-faced brands. Edwards Global Services, Inc. (EGS) has twice received the U.S. President’s Award for Export Excellence.
Find out more about the services we provide companies Going Global at:
Download our 4th quarter 2020 GlobalVue™ 40 country ranking chart at this link:
Download our latest published article, “2021 International Outlook – Mixed Prospects Amid Global Uncertainty”, go to this link:
William Edwards, CFE, is CEO and Global Advisor of Edwards Global Services (EGS). He has 46 years of international operations, development, executive and entrepreneurial experience and has lived in 7 countries. With experience in the franchise, oil and gas, information technology and management consulting sectors, he has directed projects on-site in Alaska, Asia, Europe and the Middle and Near East. Mr. Edwards advises a wide range of companies on early to long term global development of their brands.
For truly global market research, operations and development support across 40 countries on taking your business global successfully contact Mr. Edwards at bedwards@edwardsglobal.com or +1 949 224 3896.
https://calendly.com/geowizard/30min Click here to schedule a call with Bill Edwards
Everything You Need To Know To Make Your Franchise A Global Success
“96 percent of the world’s consumers and over three-quarters of the world’s purchasing power are outside of the United States”, US SBA Administrator.
“Nearly 90% of the next one billion people to attain middle-class status will be in Asia.” Homi Kharas, Brookings Institution.
“As Globalization has taken hold over the last 20 years, international growth has become a “must” for any company seeking high rates of sustained future growth.” Catherine Monson, CEO, FASTSIGNS and Chair, International Franchise Association.
Running a successful and profitable franchise is a good way to accumulate wealth and become a high net worth businessperson and entrepreneur. However, you will need to be well educated, and maybe even a certified franchise expert, if you want to see your franchise make a lot of money.
A recent survey of Franchisor members of the International Franchise Association indicated more than 80% were either international or planned to go global this decade. Having helped 40+ franchisors take their brand global, here are the questions most people have:
- Which countries have the highest potential for our specific brand?
- What is the best international development model for our specific franchise?
- Will our brand fit into the culture of other countries?
- Will we have to change our training, support, and marketing programs?
- Can we eventually make a good return on our international investment?
- What does it cost to develop our franchise outside our home country?
To answers these questions, let’s answer the why, when, how, where and with whom of taking a franchise international
Why Take Your Franchise International?
- Add new sources of franchise fees, royalties and product sales
- Reduce dependence on your home country market
- Leverage your existing technology, know-how and intellectual property
- Improved economies of scale through network growth
- Become a franchise expert
When should you take your franchise international?
- 10 units or 250 units? The number of units is not the best measure of being ready
- When your business management technology and Intranet are robust
- When you have applied for a trademark before seeking a licensee in a country
- When your training, marketing, and support resources are online
- when you’ve become familiar to franchising and an expert in the domain
- But, most of all, when you have a plan to succeed
How – The International Development Options
- Master Franchise – Franchisor grants exclusive rights for a country to one company or expert, often with the right to sub-franchise
- Area or Regional Franchise – Franchisor grants exclusive rights for part of a country. The most common method for food franchises
- Direct Franchise – Franchisor awards expert or certified franchisees and directly supports their Franchisees in a country
- Joint Venture License – Franchisor jointly invests, owns, and develops the business in a country with a local company
- Direct Investment – Franchisor owns and operates all units in a country.
Where should you take your franchise?
- Rule of Law and IP Protection – this is needed to protect your brand over time
- Country Stability – this is needed to be able to start and grow your brand
- Your consumer market size – who can. And will want to buy at your franchise
- Culture – adaptation, but not changing the brand
- Ability to get paid in a timely manner, not all countries allow freedom of payments
- Potential to Achieve An Acceptable ROI – you will have costs associated with fees
And with whom? Your international licensee should have these attributes:
- A passion for and understanding of your business
- Successful company with expert experience in appropriate sectors
- Good reputation in the country
- Experienced management to put into the business
- Access to suitable real estate
- Marketing oriented company
- Capital to start and grow your business in their country
- Preferably a licensed or certified expert themselves
A Proven International Development Strategy
- Budget conservatively for the first 3-5 years of international developments
- Be realistic in your initial fee expectations
- Realize that initial fee revenues have associated expenses over time
- Be realistic in how many countries you can award and properly support
- Plan ahead for marketing, training, and support costs
William Edwards, CFE, is CEO of Edwards Global Services (EGS) and a global advisor to CEOs. He has 47 years of expert international experience and has lived in 7 countries. He has been a certified Franchisor, an International Master Franchisee in 5 countries, and has assisted more than 40 franchisors in their global development. bedwards@edwardsglobal.com +1-949-224-3896. For more information on the Certified Franchise Executive program, please go to this link: http://bit.ly/3ulCfpE
EGS Biweekly Global Business Newsletter Issue 23, Monday, February 8, 2021
By William (Bill) Edwards, CEO of Edwards Global Services, Inc. (EGS)
“Success isn’t always about greatness. It’s about consistency. Consistent hard work leads to success. Greatness will come.”, Dwayne Johnson
“Success is the sum of small efforts, repeated day in & out.”, R. Colier
“So often in life things that you regard as an impediment turn out to be great good fortune.”, Ruth Bader Ginsburg
Introduction
Our biweekly newsletter focuses on what is happening around the worldthat impacts new trends, health, consumer spending, business investment and travel.
HiiHighlights in issue #23:
- Vaccine milestone as global Covid jabs pass number of confirmed cases
- Daily cases of COVID-19 are currently falling across most of the world, and deaths….are also beginning to decrease
- Which Covid-Related Consumer Marketing Changes Will Last Beyond the Pandemic? In the Articles and Charts section
- Work-from-home isn’t going away: Only 4% of CEOs plan to add office space. In the Articles and Charts section
- Lots of positive brand recovery news in the Brands section
- A global risk assessment in the Articles and Charts section
We daily monitor 30+ countries, 40+ international information sources and six business sectors to keep up with what is going on in this ever-changing environment. Our GlobalTeam™ on the ground covers 43 countries and provides us with updates about what is happening in their specific countries.
Please feel free to send us your input and sources of information. Our contact information is at the bottom of this newsletter.
First, a few Personal Comments
The big news today is the growing initial vaccinations in many key business countries along with an apparent broad decline in the number of new cases. Business leaders are cautiously optimistic about the recovery of business in 2021. The International Monetary Fund recently projected the global economy will grow 5.5% in 2021 versus a -3.5% in 2020. The 2nd half of 2021 may see post-COVID-19 travel passports.
Vaccine Updates from Around the World
“Vaccine milestone as global Covid jabs pass number of confirmed cases: FT tracker shows rapid growth in doses administered around world — but warnings come of long road ahead.”, The Financial Times, February 3, 2021
“Daily cases of COVID-19 are currently falling across most of the world, and deaths — which had been climbing globally until late January — are also beginning to decrease…..this is the first time since the pandemic began where cases are falling in basically every region of the world at the same time. On a global level, virtually the only number that is rising is vaccine doses administered. And in some places — south Asia for example — there’s growing confidence that the worst of the pandemic may be over even before vaccines become widely available.”, Axios, February 5, 2021
Please see specific country vaccine news in the country section below.
Interesting Data and Studies
“In our newest McKinsey Global Survey of more than a thousand executives from all industries, the outlook is still positive, though not quite as strong as in early December 2020. Majorities of executives continue to believe that conditions in their home economies and in the global economy will improve over the next six months.”, McKinsey & Co., February 2, 2021
“Carlsberg predicts surge in demand similar to Jazz Age boom: World’s third-largest brewer expects ‘normal summer’ as lockdowns lift. Carlsberg is expecting a surge in demand this summer similar to a boom seen a century ago as more people are vaccinated and lockdowns lift, according to the Danish brewer’s chief executive.”, The Financial Times, February 7, 2021
Global and Regional Travel Updates
“Where Can I Travel Internationally and Do I Need the Covid-19 Vaccine? Covid restrictions for international trips are more complicated than ever. Before you dust off your passport, a few words of caution. THE COVID-19 VACCINES have arrived. Does this mean we’ll soon be free to roam the world, guilt- and hassle-free? The short answer is no. While an inoculation protects you from getting sick, it’s not yet known whether the vaccines will prevent an asymptomatic person from passing the virus to others.”, The Wall Street Journal, February 4, 2021
“Healthy Passport Apps Under Development in Travel Industry: Travel technology companies are developing health passport apps to allow travelers to verify test results or vaccinations for international flights……SITA, a travel technology firm with its U.S. offices in Atlanta, said Thursday it has started trials of technology enabling airlines and passengers to share COVID-19 test results or vaccination history with authorities to meet government requirements. It has tested it with travelers to the United Arab Emirates and plans for a trial at Milan, Italy’s Malpensa Airport.”, The Atlanta Journal-Constitution, February 6, 2021
“The future of business travel: Digital nomads and “bleisure” define the new high-tech take on work trips: The coronavirus pandemic served as a temporary kill shot to the business travel industry. A tech-savvy and adaptable hospitality industry is rising from these ashes in the remote work era.”, Tech Republic, January 29, 2021
“Delta Air Lines Launches First Domestic Digital ID Test: As the COVID-19 pandemic changes the way people travel by air, possibly forever, growing attention is being paid to systems and procedures aimed at eliminating opportunities for close personal contact and the exchange of objects and papers that can lead to disease transmission.”, Airline Geeks, February 1, 2021
“Delta and Alitalia To Codeshare on COVID-Tested Flights: That gives customers the ability to produce a negative COVID-19 test before flying to avoid quarantine in either country. Effective immediately, travelers can book to fly on Alitalia’s dedicated COVID-tested service from New York’s John F. Kennedy International and Delta’s COVID-tested service from Atlanta’s Hartsfield Jackson International Airport with both flying to Rome’s Fiumicino Airport.”, Travel Pulse, February 2, 2021
“Delta Plans to Bring 400 Grounded Pilots Back to Active Flying Status by Summer: Earlier this month, Delta’s senior vice president of flight operations John Laughter detailed in a memo to staff that the airline plans to return 400 pilots to regular flying status by summer 2021, so they are ready to fly again by summer 2022, according to a report from CNBC. ‘As we looked at ways to better position ourselves to support the projected recovery, we saw an opportunity to build back additional pilot staffing in advance of summer 2022 by bringing 400 affected pilots back to active flying status by this summer,’ Laughter said in his staff note, per the publication.”, People, January 28, 2021
“Copa Will Become the First American Carrier to Have IATA Travel Pass: The International Air Transport Association (IATA) is partnering with the Panamanian government and Copa Airlines to trial the IATA Travel Pass – a mobile app to help passengers easily and securely manage their travel in line with government requirements for COVID-19 testing or vaccine information.
“Australian PM’s New Hope for Country’s Airlines: Australia’s Prime Minister, Scott Morrison has announced that the country’s international arrival caps would return to a higher rate. However, the PM also argued that for the near future, the hotel quarantine process would proceed as before irrespective of vaccination process.”, Airways Magazine, February 7, 2021
“San Diego Airport rolls out on-site COVID-19 testing: Carbon Health, a major player in COVID-19 testing, will now extend its footprint to the San Diego International Airport (SAN). It’s offering “travel clearance visits” that include a COVID-19 test that is sufficient for domestic travel. San Diego joins other West Coast airports such as Portland, San Jose and Los Angeles that all offer similar testing.”, The Points Guy, February 6, 2021
Australia
“Retail and fast-food workers to receive increase in minimum wage from today: The retail and fast-food award wage is now $21.78 an hour.”, Smart Company Australia, February 1, 2021
“Restaurant owners increasingly optimistic about business this year, Deliveroo report says. 81% of restaurant owners are planning to hire more staff. Restaurant sector confidence has grown going into 2021, with hiring and building out a strong workforce becoming a major focus.”, QSR Media Australia, January 21, 2021
“Temporary restructuring relief for small business directors: The Australian Government introduced insolvency reforms for small businesses that came into effect on 1 January 2021, including temporary restructuring relief. These reforms extend some of the temporary measures introduced in March 2020 in response to the COVID-19 pandemic.”, News Hub Asic Australia, January 18, 2021
The three articles om Australia are compliments of Jason Gehrke, Managing Director of the Franchise Advisory Centre, Brisbane, from their February 5, 2021 franchise newsletter.
Mainland China – Chinese New Year is February 12th
“China Services Activity Expands at Slowest Pace in Nine Months, Caixin PMI Shows: China’s services sector expanded at the slowest pace in nine months in January as growth in total new business and new export business softened, a Caixin-sponsored survey showed Wednesday. The Caixin China General Services Business Activity Index, which gives an independent snapshot of operating conditions in the services sector, fell to 52 in January from 56.3 the previous month.”, Caixin, February 3, 2021
“US fast food giants turn to the taste of Chinese: From Chinese burgers to ice cream doused in chili oil, US fast-food giants are infusing their offerings with a Chinese flair. McDonald’s and KFC have long localized their menus to appeal to the Chinese palate, but their latest takes on traditional dishes and ingredients seem to be causing quite a buzz, and not always the good kind.”, Shine, January 27, 2021. Submitted by Paul Jones, Jones & Co., Toronto
https://www.shine.cn/news/nation/2101273955/
“China wins a boost for international luxury brands: The COVID-19 pandemic has had sweeping repercussions on almost all sectors of the worldwide economy. The fashion industry has been among the hardest hit because it is, in essence, under the non-essential spending category. Yet there is light at the end of the tunnel — for some.”, Shine, February 3, 2021. Submitted by Paul Jones, Jones & Co., Toronto
https://www.shine.cn/feature/lifestyle/2101314114/
“China’s Car Sales Rose 25% in January: It was the strongest growth since September 2016. Retail sales of passenger cars rose 25.7% to 2.16 million vehicles last month compared with the same time a year before, the China Passenger Car Association said Monday, the strongest growth since September 2016.”, The Wall Street Journal, February 8, 2021
Iceland
“Iceland opens up after success of Covid testing regime: ‘Cautious steps’ will see return of personal training in gyms and opening of bars until 10pm. Iceland became one of the first European countries to start opening up society again after the second wave of Covid-19 as it reaped the rewards of having the region’s lowest infection rate.”, The Financial Times, February 8, 2021
Korea
“South Korea eases curfew on businesses outside Seoul: South Korea on Saturday eased curfews on more than half a million restaurants and other businesses outside the capital Seoul, letting them stay open an hour later, amid a public backlash over tight curbs to contain COVID-19.”, Reuters, February 5, 2021
“South Korea Leads World in Innovation as U.S. Exits Top Ten: South Korea returned to first place in the latest Bloomberg Innovation Index, while the U.S. dropped out of a top 10 that features a cluster of European countries. Korea regained the crown from Germany, which dropped to fourth place.”, Bloomberg, February 2, 2021
New Zealand
“’Hard and early’ lockdown was the right economic strategy: Economist. Going “hard and early” with a strict lockdown to stop the spread of Covid-19 has proved to have been the best tactic for the economy, too, Infometrics chief forecaster Gareth Kiernan says. The economics consultancy has updated its forecasts and now expects GDP growth to accelerate to 4.6 per cent in the second half of 2021. Kiernan said the country’s economy had now almost recovered to pre-Covid levels. In the year to December 2019, GDP growth was 2.3 per cent.”, Stuff New Zealand, February 5, 202i, Compliments of Simon Lord. Franchise New Zealand
The Philippines
“This hotel in Metro Manila has multifunctional pods for safe outdoor dining, massage. Sheraton Manila is offering the first-ever luxury outdoor dining pod in the Philippines called “Vubble Pods.”, GMA News Online, January 5, 2021
Singapore
“Singapore approves Moderna’s COVID-19 vaccine in Asia first: Singapore has become the first country in Asia to approve Moderna’s COVID-19 vaccine as it begins rolling out its immunisation programme to the wider population.”, Reuters, February 3, 2021
“Our COVID-19 cases have been low since last fall — here’s what we’re doing right: Dr. Lim Hui Ling, 51, is the medical director for the International Medical Clinic in Singapore. Lim says going through the 2002-2003 SARS pandemic helped prepare her and other healthcare workers to deal with COVID-19. She also credits fellow Singaporeans for helping stop the spread of the virus by willingly wearing masks, social distancing, and using a contact tracing app.”, Business Insider, February 8, 2021
South Africa
“South Africa halts AstraZeneca vaccine rollout: South Africa stopped the distribution of the AstraZeneca-Oxford vaccine on Sunday, after researchers found that the vaccine ‘provides minimal protection’ against infection from the new strain first identified in the country, Reuters reports.”, Axios, February 8, 2021
United Kingdom
“Vaccines minister ‘confident’ everyone over 50 will be offered coronavirus jab by May: Nadhim Zahawi says that at one point on Saturday, the UK was administering COVID-19 jabs at a rate of almost 1,000 per minute. The pace of the vaccine rollout indicates the UK is on track to meet its target of offering a jab to everyone in the top four priority groups – about 15 million people – by the middle of this month.”, Sky News, February 7, 2021
“Scientists raise hopes of March meetings and normal summer: The country could be back to near normal by summer, with people able to meet relatives as early as next month, senior scientists have said.”, The Sunday Times of London, February 5, 2021
“NHS plans for annual coronavirus vaccinations: UK government aims to copy flu prevention programme as model for control of new variants. The NHS is planning a mass campaign of booster jabs against new variants of coronavirus as early as the autumn, in what the vaccines minister suggested would become an annual effort to prevent Covid-19 as the virus keeps mutating.”, The Financial Times, February 7, 2021
“UK applying to join Asia-Pacific free trade pact CPTPP: The UK will apply to join a free trade area with 11 Asia and Pacific nations on Monday, a year after it officially left the EU. Joining the group of “fast-growing nations” will boost UK exports, the government says. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership – or CPTPP – covers a market of around 500 million people.”, BBC News, January 31, 2021
United States
“Johnson & Johnson Asks U.S. Regulators for Emergency Approval of Its Covid-19 Vaccine: The potential third vaccine could jump-start a slower-than-expected vaccination rollout…. J&J’s shot wouldn’t only boost the overall supply of Covid-19 vaccine doses, but also could simplify vaccinations for many because it is given in one dose.”, The Wall Street Journal, February 4, 2021
“Business Travel Deductions in the Post COVID-19 World: Tax expert Bonnie Lee offers some tips on what to claim, what not to claim and what’s changing on 2020 taxes.”, Business Traveler, January 27, 2021
“Technology Adoption: This visualisation details the rates of diffusion and adoption of a range of technologies in the United States, measured as the percentage of US households with access or adoption over time.”, Our World In Data, February 2021
Brand News
“’We’re delivering iconic pizzas and blockbuster moments’: Pizza Hut talks digital. Last year, Pizza Hut decided to launch its first global campaign in 20 years to celebrate the 40th anniversary of its iconic Pan pizza, delivering a digital-first campaign in 55 markets around the world and declaring October ‘Global Pizza Month’. This campaign also saw Pizza Hut use its ‘now that’s delivery’ brand story globally for first time, after seeing how successful the message was in the UK alongside the restaurant chain’s ambassador character, Parker.”, MobileMarketing, February 4, 2021
“What Lies Ahead for Restaurant Franchising: Franchise experts weigh in on the opportunities for the industry in a post-pandemic environment. big reason for many quick serves to be excited is the state of franchising. All signs point to franchises surviving the pandemic better than others, and there is significant potential in franchising moving forward; economic downturns typically lead to more people looking for a second career, and would prefer the safety net of a proven concept.”, QSR Magazine, January 29, 2021
“Chipotle’s Recovery Has Come From Its Digital Business. Here’s How Operations Kept Up. The company announced its Q4 results Tuesday afternoon, which included a comp sales increase of 5.7%, a revenue increase of 11.6% and digital sales growth of 177.2%. This is compared to Q2–in the depths of government-mandated shutdowns and unprecedented consumer anxiety–when comp sales dropped nearly 10%.”, Forbes, February 3, 2021
“This Chicken Chain Is Opening 100 New Locations This Year: Church’s credits its success to strong delivery sales and a mega successful chicken sandwich….. A Southern chain with a fried chicken legacy spanning almost seven decades is planning a major expansion this year as it rides the momentum of the chicken category.”, Eat This, Not That, February 2, 2021
“Everyone Wants Sushi to Go, and It’s Saving Some Restaurants: Eateries and grocers are selling more takeaway sushi during the pandemic, while supermarkets rush to train chefs. Sushi was the most searched takeout cuisine on restaurant-reservation platform Tock during the last three months of 2020.”, The Wall Street Journal, February 6, 2021
“How Two Franchisees Are Affected by Covid, and How They’re Responding: We asked a wide range of multi-unit franchisees about the biggest impacts Covid-19 has had on their business, how they’ve responded, and which changes they think will be permanent. This week we hear from a longtime restaurateur Del Taco operator and a 13-year franchisee of The Learning Experience.”, Franchising. Com. February 8, 2021
Articles and Charts About Doing Business in The Times Of COVID-19 and Beyond
“2021 International Development Goes Online in the Pandemic: 2020 has been a challenging year for the entire global franchise community as the Covid-19 crisis has changed how we seek new international licensees. International travel to countries stopped in May. To meet new licensee candidates, we had to resort to videoconferences. Due diligence on candidates became remote. Discovery days to have candidates meet the franchisor team and see face-to-face the resources the franchisor would provide either did not happen in 2020 or were done virtually.”, Franchising.com article by William Edwards, CEO of Edwards Global Services, Inc. (EGS), February 2021
“Expanding Your Business Internationally in 2021: If you have been thinking about expanding your business internationally, the decision to move overseas is both challenging and rewarding. Whether it has always been part of your long-term business plan or you are responding to a current international opportunity, there are critical considerations you need to make for your project to be successful.”, ArtOne Translations by Olena Polissky, Vancouver, January 29, 2021
“Which Covid-Related Consumer Marketing Changes Will Last Beyond the Pandemic? Looking at what’s changed in 2020 because of Covid – and what changes might be permanent – let’s start with the biggest driver of economic activity: consumers. A majority of the more than 2,000 people surveyed by Jones Lang LaSalle said they want to continue working away from the office at least two days a week; only 26% want to do it full-time after the pandemic passes.”, Franchising.com, Darrell Johnson, CEO of FRANdata, February 2021
“Work-from-home isn’t going away: Only 4% of CEOs plan to add office space: Once the vaccine is fully rolled out, we’ll find out what the future of remote work is. To get a sense of where we’re headed, Fortune conducted a survey of CEOs in collaboration with Deloitte.”, Fortune, February 4, 2021
“A Global Risk Assessment of 2021 And Beyond: Risk is all around us. After the events of 2020, it’s not surprising that the level and variety of risks we face have become more pronounced than ever. Every year, the World Economic Forum analyzes the top risks in the world in its Global Risks Report. Risks were identified based on 800+ responses of surveyed leaders across various levels of expertise, organizations, and regional distribution.”, Visual Capitalist, January 25, 2021
“Mapping Global Income Support During COVID-19: Income loss has impacted many during the COVID-19 pandemic. Unemployment, reduced hours, office closures, and business shutdowns have prompted the need for mass income support. Income support, in this case, is defined as governments broadly covering lost salaries, or providing universal basic income or direct payments to people who have lost their jobs or cannot work. Levels of income support are changing over time.”, Visual Capitalist and Our World In Data, January 26, 2021
“The UN projects that the global population increases from a population of 7.7 billion in 2019 to 11.2 billion by the end of the century. By that time, the UN projects, fast global population growth will come to an end.”, Our World In Data, November 2019
“Business cards are going online in Asia: But traditionalists miss the feel of paper and ink. Networking is difficult when white-collar workers have fled to home offices, business lunches have been cancelled and conferences have migrated online. Orders for business cards from Vistaprint, a multinational printing company, plummeted by 70% in late March and early April and have yet to recover fully.”, The Economist, February 6, 2021
Who We Are and How We Help Companies ‘Go Global’ Successfully
Edwards Global Services, Inc. (EGS) provides a complete International solution for U.S. businesses Going Global. From initial global market research and country prioritization, to developing new international markets, providing in-country operations support and problem solving. around the world. Our U.S. based executive team has experience living and working in many countries. Our Associate network on the ground overseas covers 40+ countries.
Founded in 2001, Edwards Global Services, Inc. (EGS) takes businesses global and currently has activity in 25 countries. Our Clients are consumer-faced brands. Edwards Global Services, Inc. (EGS) has twice received the U.S. President’s Award for Export Excellence.
Find out more about the services we provide companies Going Global at:
Download our 4th quarter 2020 GlobalVue™ 40 country ranking chart at this link:
William Edwards, CFE, is CEO and Global Advisor of Edwards Global Services (EGS). He has 46 years of international operations, development, executive and entrepreneurial experience and has lived in 7 countries. With experience in the franchise, oil and gas, information technology and management consulting sectors, he has directed projects on-site in Alaska, Asia, Europe and the Middle and Near East. Mr. Edwards advises a wide range of companies on early to long term global development of their brands.
For market research, operations and development support on taking your business global successfully contact Mr. Edwards at bedwards@edwardsglobal.com or +1 949 224 3896.
